Find out about the voluntary repayment bonus and how it can help you repay your loan faster.

• What is the voluntary repayment bonus?
• What are voluntary repayments?
• How do I qualify for the voluntary repayment bonus?
• What happens if I want to repay my loan in full?
• When will I receive the bonus?
• I want to make a voluntary repayment

What is the voluntary repayment bonus?

The voluntary repayment bonus is a 10% bonus you can receive for making voluntary repayments that total $500 or more in a tax year (1 April to 31 March). Your loan balance must be $550 or more at the beginning of that tax year to qualify. The bonus will generally be 10% of the payments you make, not of your loan balance. For example, if you make voluntary repayments of $800 your loan will be reduced by this amount and then we'll take off another $80 from your balance as your bonus (10% of $800).

You don't need to apply for the voluntary repayment bonus - if you qualify we'll apply it to your account automatically. To qualify you need to meet all your student loan obligations for the tax year, including:

• using the correct tax code
• making your repayments by the due date, and
• filling in your income tax returns (if you're required to) on time.

What are voluntary repayments?

Voluntary repayments are payments you make on top of what you have to repay for a tax year. These payments can be made either as a single lump sum or by smaller amounts throughout the year. Any student loan repayments that you make directly to Inland Revenue will first be credited towards any old and current repayment obligations you may have. Any amounts left over will be treated as a voluntary repayment - so it's important to keep up with your repayment obligations throughout the year.

How do I qualify for the voluntary repayment bonus? 

You may qualify for a voluntary repayment bonus if:

• you're up-to-date with your student loan repayments and filing your income tax returns (if you're required to)
• your loan balance with Inland Revenue is $550 or more at the beginning of the tax year (1 April), and
• your voluntary repayments for the tax year total $500 or more.

What happens if I want to repay my loan in full? 

If you want to repay your loan in full you can do either of the following:

When repaying your loan in full, the amount of your bonus is limited by legislation to 1/11th of your loan balance, not 10% of any payments you make. This ensures you're not receiving a bonus on payments you didn't need to make to pay your loan in full.

To make a final payment you'll need to:

• get a current loan balance, and
• include any loan balance you have with StudyLink.

When will I receive the bonus?

If you qualify, when you receive your voluntary repayment bonus depends on your circumstances.

You can check if your voluntary repayment bonus has been applied by checking your loan balance. Once it has been applied it will also show on your next student loan statement issued in May and October of each year.

I want to make a voluntary repayment

Remember, the more you repay towards your loan, the faster you'll pay it off and you could save yourself money. Use our repayment calculator to compare the difference between repaying your loan at the minimum rate and making voluntary repayments as well. There are a number of ways to make a repayment to your loan including free online money transfers if you're overseas.

As when making any financial decisions, you're advised to seek appropriate financial advice before taking advantage of the voluntary repayment bonus.